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California and Texas Just Asked AI the Same Water Question

3 days ago
3 min read

Artificial intelligence may live in the cloud. But the infrastructure behind it sits firmly on the ground.

And in September, two of America's largest states asked data centers essentially the same question:


How much water are you actually going to use?



On September 21, California Governor Gavin Newsom signed a package of new laws requiring greater transparency around the electricity, water and land-use impacts of data centers.

That same day, Texas Governor Greg Abbott directed regulators to halt permits sought by data centers until required electricity and water audits are completed. A week earlier, on September 14, Texas had already ordered stronger enforcement of existing water-use reporting requirements for major users, including data centers.


California and Texas don't agree on everything. Apparently, though, they agree on one basic principle:

You can't plan infrastructure around numbers you don't have.


First, Measure the Water

California's new rules get surprisingly specific. New or expanding data centers will have to provide local governments and water suppliers with information about expected water demand, supply, efficiency and drought planning.

The legislation also strengthens reporting around actual water use, giving communities a clearer picture of how these facilities affect local resources.


Why does that matter?

Because data centers are expanding rapidly, while the water systems serving them were often designed decades ago for very different demand patterns.

Water planners cannot prepare for future shortages if a major new category of consumption remains difficult to see.


Texas Is Asking an Even Harder Question

Texas is approaching the issue differently. The state already requires major water users to report their consumption. In September, Governor Abbott directed the Texas Water Development Board to enforce those rules more aggressively for data centers and to impose consequences when required reporting is missing.


Texas has also asked something particularly interesting:

Are data centers bringing their own water solutions — including reuse and water-efficient cooling — or are they relying on water already needed by local communities?


The state's audit specifically asks for projected water consumption, water sources, cooling technology and whether facilities plan to reuse water.


That changes the conversation. This is no longer simply: How much water will you consume?

It is also: What kind of water do you actually need?


And That May Be the More Important Question

A data center needs water. But does every gallon need to be drinking-quality freshwater?

That same question applies far beyond AI.

  • Industry.

  • Commercial buildings.

  • Agriculture.

  • Toilet flushing.

  • Cooling.

  • Landscaping.


Many of the activities that consume water do not require water treated to potable standards.

Yet our infrastructure often delivers exactly that. So perhaps the California and Texas actions point toward something larger.


As new industries create new demand, simply finding more freshwater cannot always be the answer.

We may need to become much better at matching water quality to water purpose.


That could mean:

  • Reclaimed wastewater.

  • Closed-loop systems.

  • More efficient cooling.

  • Local treatment and reuse.


Or designing facilities around the water actually available in a region rather than assuming water will somehow be supplied afterward.


The AI boom is forcing governments to ask these questions quickly. But they are questions we should probably have been asking all along.

Because whether the new demand comes from a data center, a factory or a growing city, the underlying challenge is the same:


Where will the water come from - and does it really need to be new water?


💧 Water Thought of the Week

Before asking where we can find more water, we should ask whether we are using the water we already have wisely.


At Expiatech, we believe the future of water isn't finding more—it's making better use of the water we already have.


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